Load vs no load mutual funds
68Load vs no load mutual funds. Look for those no load funds!
Over the years the mutual fund industry has changed quite a lot. Several years ago almost all of the mutual funds were loaded mutual funds. Luckily, over time no load mutual funds have gained popularity in a big way.
A loaded fund is a fund that has a sales charge. The most common types of loaded funds are front end loaded funds and back end loaded funds. Many of these funds will either take around 5% out of your investment upfront, or when you redeem your shares in the fund.
No load mutual funds have no sales charge. There is no subtracting of money when you initially invest or when you redeem your shares. This chart from Yahoo Finance shows just how much of a difference the no load mutual fund will make vs the loaded front-end and back-end fund.
It used to be that investors had little choice but to go ahead and pay the sales charges of the loaded funds, but since they now have many choices I see no reason to go for the loaded mutual funds. There are literally thousands of no load mutual funds out there for investors, so there is no shortage of choices. Don't let your investment start out the game two steps behind, buy into no load mutual funds only!
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Good starting Hub! I learned some things I didn't know about from this and you have a nice writing style. The picture is appropriate and everything. Good Job! Might want to try adding more into it, some more links or pictures-up to you. I like it, that's the bottom line =).
Just wanted to point out the fact of who manages no-loads and who manages loaded funds and if you were to look at the top 10 mutual fund families based on performance over the last 10 years you find 1 no load. T Rowe Price. You'll find 2 in the top 15. Reason being that the best managers in the world want to get paid as such and no load funds just link to indexes. You won't do bad but you won't do well. Also if you have questions there is no one to answer them for you except yourself. If you were to go get a hamburger would you go to McDonalds, Outback Steakhouse, or an expensive steakhouse? Remember you tip your waiter ~18% for making sure your water cup is full and your dishes are to your liking. Let's go ahead and save our money by putting it into no-load funds and doing it ourselves instead of allowing professionals to do it while getting $5 coffees and tipping waiters obseen amounts. There's a formula for success.
ProCW 3 years ago
Well... I didn't know anything about loac and no load; now I do! Good work on your first hubpage!
ProCW